Standard Chartered latest bank to offer relief to mortgage holders, businesses in Hong Kong as coronavirus outbreak worsens

Standard Chartered said on Monday it would allow mortgage borrowers and small businesses facing financial burdens to pay only interest on their loans for up to a year, as it became the latest lender to outline its plans to offer relief to Hong Kong companies hurt by the coronavirus outbreak.

The bank said individuals in good standing on their mortgage payments for the past year would be able to apply beginning March 1 for six months of interest-only payments, which could be extended for up to one year.

Small- and medium-sized enterprises (SMEs) holding business instalment loans or loans under two government-sponsored schemes would be able to apply for interest-only payments for six months and renew it for up to another six months ending September 3. It would also waive fees for certain business customers.

Standard Chartered said it would waive late fees on credit cards between March 1 and May 31, and fees on local electronic fund transfers during this period.

“Hong Kong is facing unprecedented challenges amid the outbreak of the novel coronavirus and a slowing economy,” the bank said in a statement on Monday. “As banks play an important role in Hong Kong, Standard Chartered Bank (Hong Kong) Limited is launching a series of relief measures to help ease the financial burden on our clients during these difficult times.”

The city’s economy fell into a technical recession in the third quarter and contracted for the first time in a decade last year after months of street protests. As the protests raged, tourists cut back their travel to the city and a variety of businesses from retailers to restaurants began to suffer.